Mallya loan default case: Former IDBI Bank chairman among 8 arrested

The Central Bureau of Investigation (CBI) on Monday arrested a former chairman and three former officials of IDBI Bank, along with four former executives of Kingfisher Airlines, in connection with a Vijay Mallya loan default case.

Those arrested include the then chairman of IDBI Bank, Yogesh Aggarwal, and former chief financial officer of now-defunct Kingfisher Airlines A Raghunathan, CBI sources said. They said three more former executives of the airlines and three more former officials of IDBI Bank were also taken into custody.

Besides the former CFO of Kingfisher, the other three executives arrested were Shailesh Borke, A C Shah and Amit Nadkarni.

The arrests were followed by searches at 11 places, including Mallya’s residence in New Delhi, three floors of UB towers in Bengaluru and the residences of Aggarwal and Raghunathan, among others.

“A CBI team visited the UB Group offices in Bengaluru today (Monday) and we are fully cooperating,” a UB group spokesperson said.

The arrests were made from multiple cities. While Raghunathan was arrested in Mumbai, Aggarwal was taken into custody from Gurgaon, the sources said.

CBI alleged that Aggarwal approved the loans and also instructed to expedite the ratings while finalising the loans to Kingfisher Airlines of about Rs 900 crore.

The arrests might adversely affect the risk-taking ability of bankers while giving loans to business, especially for  big projects, and the resolution of stressed assets.